DHL celebrates modest 1Q increases

Tuesday, May 14, 2013

During the first quarter, DHL increased its revenues by 0.6 percent, year over year, to 13.4 billion euros ($17.4 billion), and before-tax earnings rose by 4 percent to 427 million euros ($553.9 million).
Net income increased by 45 percent, year over year, but net profits fell to 498 million euros ($646 million) from a total of 529 million euros ($686.2 million) during the first three months of 2012.
Frank Appel, DHL’s chief executive officer, noted these relatively positive results came despite a lackluster economy.
"Even though we have yet to feel any sort of economic tailwind, we were able to get off to a solid start in the new year. In doing so, we demonstrated once again just how robust our business model is and lived up to our position as market leader," he said in a statement. "Thanks to our commitment to customers, the gains in efficiency we have
made in recent years and our determination to continuously simplify
processes, we can reliably deliver profitable growth."
DHL’s global freight forwarding arm experienced the biggest losses of all the intergrator’s divisions, seeing declines in its air business that were partially made up with a rise in ocean freight volumes due to increased Asian demand. The division still ended the quarter with a revenue decline of nearly 2 percent to 3.6 billion euros ($4.67 billion).
There has been a general decline in traditional mail business, but DHL’s mail division experienced a 1.5-percent uptick in revenues during the quarter. Contributing factors included a robust parcel business and imposition of a postal-rate increase in Germany. Mail earnings, however, fell by 2.6 percent to 382 million euros ($495.5 million). Operating income in the express division rose 10 percent year over year, spurred on by the sale of DHL’s domestic Romanian business. Revenues bumped up slightly on the strength of Time Definite International services. Supply chain revenues rose by 2 percent, year over year, and adjusted revenues rose by 4 percent.
Despite the somewhat mixed results, DHL officials are positive about the rest of the year, seeing moderate growth on the horizon. Year-end earnings are still expected to end up between 2.7 billion euros ($3.5 billion) and 2.95 billion euros. - Jon Ross